Mortgage Early Repayment Calculator

Introduction: The Mortgage Early Repayment Calculator is a valuable tool for individuals looking to understand the benefits of making additional payments towards their mortgage. By entering essential details such as loan amount, loan term, annual interest rate, and additional monthly payment, users can estimate the potential months saved and reduced total payments.

Formula: The calculator utilizes the amortization formula to calculate the impact of early repayments:

  1. Monthly Payment: Monthly Payment=Loan Amount×Monthly Interest Rate1−(1+Monthly Interest Rate)−Total PaymentsMonthly Payment=1−(1+Monthly Interest Rate)−Total PaymentsLoan Amount×Monthly Interest Rate​
  2. Modified Monthly Payment: Modified Monthly Payment=Monthly Payment+Additional Monthly PaymentModified Monthly Payment=Monthly Payment+Additional Monthly Payment
  3. Months Saved: Months Saved=⌊Loan AmountModified Monthly Payment×12⌋Months Saved=⌊Modified Monthly PaymentLoan Amount​×12⌋
  4. Total Payments (Adjusted): Total Payments (Adjusted)=Total Payments−Months SavedTotal Payments (Adjusted)=Total Payments−Months Saved

How to Use:

  1. Enter the loan amount in the “Loan Amount” field.
  2. Specify the loan term in years using the “Loan Term” field.
  3. Input the annual interest rate in the “Annual Interest Rate” field.
  4. Enter the additional monthly payment in the “Additional Monthly Payment” field.
  5. Click the “Calculate” button to obtain the estimated months saved and adjusted total payments.

Example: For example, if the loan amount is $200,000, the loan term is 20 years, the annual interest rate is 3.5%, and the additional monthly payment is $100, the calculator will provide the estimated months saved and adjusted total payments based on these parameters.


  1. Q: How does making additional payments affect the mortgage? A: Additional payments can significantly reduce the total interest paid and shorten the loan term.
  2. Q: Is it better to make a lump-sum payment or increase monthly payments? A: Both approaches are effective. A lump-sum payment can reduce the principal, while increased monthly payments provide ongoing benefits.
  3. Q: Can I input different additional payment amounts? A: Yes, you can experiment with various additional payment amounts to observe their impact.
  4. Q: Does the calculator consider interest-only loans? A: No, the calculator is designed for traditional amortizing loans.
  5. Q: Can the Mortgage Early Repayment Calculator be used for refinancing scenarios? A: Yes, the calculator is versatile and applicable to both new mortgages and refinancing scenarios.

Conclusion: The Mortgage Early Repayment Calculator empowers users to visualize the potential benefits of making additional payments towards their mortgage. While the calculator offers valuable insights, it’s advisable to consult with mortgage professionals for personalized advice and accurate information based on individual financial situations.

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